Cos move GERC against denial of open access

GETCO had disallowed industrial units from purchasing power from open market

Being disallowed from buying cheap power in open access from outside Gujarat, industrial units on Tuesday filed a petition with the Gujarat Electricity Regulatory Commission (GERC) challenging the decision of Gujarat Energy Transmission Corporation (GETCO). GETCO had disallowed around 125 industrial units in south and central Gujarat from purchasing power in the open market.

“Gradually some of the smaller and medium units have been closing down due to being denied cheaper power. Hence, we have filed a petition with GERC against GETCO and SLDC to challenge the disallowing of purchasing cheap power from outside the state. Since GETCO and SLDC too have filed a caveat with the regulatory body, we expect to be called for a hearing soon,” said a stainless steel tubes and pipe manufacturing unit based out of Valsad in south Gujarat.

According to state government official, open access for short-term power purchases had been curtailed temporarily till the load on transmission lines eases. The state’s power transmission network is overloaded as consumer demand climbs with the onset of summer.

“Due to a rise in load demand, leading to a grid constraint in the upstream network, it shall not be feasible to permit short-term open access to consumers in enclosed list with effect from March 20,” the state-owned Gujarat Energy Transmission Corporation Limited (GETCO) had stated in a letter to industrial units earlier.

The 125-odd industrial units are also in the process of forming an association of aggrieved power consumers, said Rakesh Choudhary, executive director of the South Gujarat Textile Exporters’ Association.  

Industrial units also said that if required they may also approach other courts to challenge the disallowing of power purchase in open access.

Over the past year, industrial units in Gujarat had begun purchasing power on exchanges, which turns out to be cheaper than buying from state utilities. As much as 1,500 Mw of power is procured from outside Gujarat, as capacity in excess of 4,000 Mw idles in the state, according to government officials.

“The distribution companies in Gujarat charge Rs 6 per unit, while consumers get power at Rs 4 or so in the open market,” said a government official who did not wished to be named.

A big part of electricity from outside the state comes from hydroelectric plants that produce cheaper power and new thermal plants in Chhattisgarh, where the cost of transporting coal is significantly lower.

“Even in regions like Silvassa and neighbouring states like Maharashtra and Rajasthan, the difference in power tariff with Gujarat is around Re 1,” said Choudhary. Industrial units have been saving between Re 1 and Rs 2.50 a unit, depending on the amount of power bought on exchanges.